Banks in Pakistan plan to launch an electronic platform for know-your-customer procedures that will operate nationwide. The blockchain-based system will allow them to exchange customers’ personal information through what they describe as a self-regulating, decentralized network.
Pakistani banks looking to use blockchain for KYC checks
Pakistan Association of Banks (PBA) has signed a contract for the implementation of a blockchain-based know-your-customer (KYC) platform to be developed by Avanza Group. The latter unites companies specialized in advanced banking applications, customer experience management solutions, blockchain and artificial intelligence.
The signing ceremony was held at the industry organization’s office in Karachi on Thursday and was attended by several officials including its Chairman Muhammad Aurangzeb and Avanza Innovations CEO Waqas Mirza, announced the PBA.
The project to create the electronic KYC system is part of the ongoing efforts by the State Bank of Pakistan (SBP) to strengthen the country’s anti-money laundering (AML) and anti-terrorist financing (CTF) control infrastructure, according to a statement. prepared press.
“In addition to strengthening AML controls, the implementation of this platform will generate efficiencies in participating banks and will result in an improvement in the customer experience,” detailed the PBA, which has been overseeing the project on behalf of its members.
Consonance, the e-KYC platform designed by Avanza, uses blockchain technology to allow banks to standardize and exchange personal data through a “decentralized and self-regulated network.” That should happen with the consent of customers, according to the association.
Banks will be able to perform assessments of their existing and new customers using data from KYC checks performed by other participating institutions. This should minimize onboarding costs and improve the customer experience when opening an account, “thus facilitating financial inclusion,” the PBA insisted.
In March last year, SBP Governor Reza Baqir was quoted as saying that he sees few good use cases for cryptocurrencies. At the same time, he recognized that blockchain technology can be useful with its potential to solve many problems.
Do you think Pakistani banks will find other use cases for blockchain technology? Tell us in the comment section below.
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